The domestic airline will pay approximately $91 million (Rs 755 crore) to the Ottawa-based credit agency. In exchange, SpiceJet will take full ownership of 13 Q400 aircraft that were financed by EDC. This move aims to strengthen the airline's operational capabilities and fleet management.
According to SpiceJet's press release, this agreement is a significant milestone in its quest for financial stability. Ajay Singh, the Chairman and Managing Director of SpiceJet, expressed gratitude to EDC for their cooperation, stating that the settlement will help bolster the airline's balance sheet and position it for long-term success.
The debt settlement stems from a loan taken by SpiceJet in 2011 to acquire 15 aircraft, of which 12 Q400s are currently grounded. By acquiring ownership of these 13 aircraft, SpiceJet will no longer be obligated to pay monthly rentals, resulting in substantial long-term savings.
Following the announcement, SpiceJet's shares surged by 5.53% to 62.00 per equity share on the National Stock Exchange (NSE) at 1:30 pm. The deal reflects SpiceJet's commitment to prudent financial management and its determination to achieve sustainable growth in the aviation industry.
